Hybrid Appraisals

[Surf Cat]

The lenders many times, are basing their lending decision on just the PDC's photos and information from collateral underwriter..... the loan is waived before it even gets to the appraiser for their $125 report....

 

[Zoe]

I do miss Ms. Joan Trice. I know she don't miss me.

I lost my best friend and still not over it.

I never saw Ms. Trice as my best friend, however I do miss her.

We had a love/hate relationship. She would drill me and I would drill her.

 

[Justinjla]

They don't see increased risk because they are measuring the change risk based on default rate. It's really stupid. I don't know if these people at the GSE are full blown idiots or if they are intentionally misleading. It is one or the other.

In addition to default rate, we also measure risk by data accuracy, value accuracy, over valuation, under valuation, collateral underwriter risk score/flags, loan performance, loss severity, collateral related loan defects and more.

 

[J Grant]

IMO that's a good explanation that bears some elaboration for some of our slow readers.

Stop condescending like calling soms slow readers. We understand what a decreased fdeautl rasis is. First of all, we have to trust their cherry-picked studies on it, especially since these products do not have years of exposure in the market to play out.

I have explained numerous times that it is a bait and switch for the GSEs to judge valuations and appraisals on dual risk since the appraisal is a front-end market value purpose product.

And speaking of default risk, the WAIVERS are given to better credit and higher-income lower-risk borrowers and for more conforming properties - so the appraisals will show a higher default rate and this a higher risk for the appraisal vs the waivers based on an AVM - a self-fulfilling prophecy

-

 

[Zoe]

The lenders many times, are basing their lending decision on just the PDC's photos and information from collateral underwriter..... the loan is waived before it even gets to the appraiser for their $125 report....

The problems arrive in a very heterogenous market. Too much emphasis is being put on the inspection. Miniscule in the big picture.

 

[J Grant]

In addition to default rate, we also measure risk by data accuracy, value accuracy, over valuation, under valuation, collateral underwriter risk score/flags, loan performance, loss severity, collateral related loan defects and more.

Again, you keep defining it in terms of risk, not whether it is a credibly supported market value opinion.

If you folks were really, truly concerned about risk, you would ask that apparislas be assiend in a round robbin manner with fee compaism off the table the way VA works or direct lenders worik with a et fee per region - and that is because in a round robbin, the VA or former FHA before lender select replaced it - in around robbin assignment teh appraisers would not fear coming in bloew value the way they do now, since the AMCs are not a fire wall and routinely drop an appraise from work as do some lenders if the appraiser comes in "low" too often

 

[Surf Cat]

In addition to default rate, we also measure risk by data accuracy, value accuracy, over valuation, under valuation, collateral underwriter risk score/flags, loan performance, loss severity, collateral related loan defects and more.

See?

 

[Zoe]

MV definition is most unique value definition of any value definition that professional appraisers are licensed to perform.

 

[Joe Flacco]

In addition to default rate, we also measure risk by data accuracy, value accuracy, over valuation, under valuation, collateral underwriter risk score/flags, loan performance, loss severity, collateral related loan defects and more.

You are using a circle of checking the avm with the avm. It is all based on the faulty idea that the avm is correct. The whole methodology is nonsense.

 

[glenn walker]

? How is it good for consumers?
The hybrids cost as much as or only slightly less than a traditional appraisal. Even if a consumer saves $100, it will not change their life esp compared to the thousands and tens of thousands osf $ they pay in other fees related to a loan or purchase transaction

We all know the quants and bean counters at the GSEs and Money Center Banks are in Beta Mode and there's no reason to have two people at the same or higher price doing the work one appraiser can do.

That's not how it works and I'm surprised how anyone would not see the bigger picture. The plan is working because the last in the plant always believe corporate isn't going to lay them off like the last wave on Friday.

The best plan is to design a business model that can ride out the full fee appraisal model but be prepared to shift gears as you near retirement age.

If one can ride another five years i believe it can be done, but if longer I would be building a new business or plan a change in careers.

In the past I thought commercial was
the ride but most I know are also having a difficult time but they have other resources or a spouse to live on.

The main thing is start the change now and don't wait until the big boy's slam the door shut in your face.